document.write( "Question 1135128: Margaret's car loan statement said she would pay $6,568.80 in simple interest for a five-year loan at 8.4%. How much, in dollars, did Margaret borrow to buy the car? \n" ); document.write( "

Algebra.Com's Answer #752756 by Theo(13342) $\"\"$ $\"About$

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the formula for simple interest is i = p * r * t.\r
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\n" ); document.write( "\n" ); document.write( "i is the interest.
\n" ); document.write( "p is the principal.
\n" ); document.write( "r is the interest rate per time period.
\n" ); document.write( "n is the number of time periods.\r
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\n" ); document.write( "\n" ); document.write( "in your problem:\r
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\n" ); document.write( "\n" ); document.write( "i = 6568.80
\n" ); document.write( "n = 5
\n" ); document.write( "r = 8.4% / 100 = .084\r
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\n" ); document.write( "\n" ); document.write( "the time period is years.\r
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\n" ); document.write( "\n" ); document.write( "plug those values into the formula to get 6568.80 = p * .084 * 5\r
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\n" ); document.write( "\n" ); document.write( "solve for p to get p = 6568.80 / (.084 * 5) = 15640.\r
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\n" ); document.write( "\n" ); document.write( "she borrowed 15,640 dollars at 8.4% simple interest.\r
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\n" ); document.write( "\n" ); document.write( "test your formula with this value to confirm the solution is good.\r
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\n" ); document.write( "\n" ); document.write( "15640 * .084 * 5 = 6568.8, confirming the solution is good.\r
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